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The Balance Sheet Was The Topic Dujour At March FOMC Meeting

April 6, 2017

The Wall Street Journal – Fed Officials Expect to Whittle Down Portfolio Later This Year: Minutes The Fed’s balance-sheet strategy remains a work in progress. Most officials want to use short-term interest rates as their primary tool for conducting monetary policy, which means once they set in motion their plan for shrinking the portfolio, they… Continue reading The Balance Sheet Was The Topic Dujour At March FOMC Meeting

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Will the Federal Reserve’s Balance Sheet be the First Domino?

April 6, 2017

Bloomberg – Fed Favors Plan to Start Shrinking Balance Sheet Later in 2017 ‘Some participants viewed equity prices as quite high’ Most Federal Reserve officials said they backed a policy change that would begin shrinking the central bank’s $4.5 trillion balance sheet later this year, as they reiterated their outlook for gradual interest-rate increases. “Most participants… Continue reading Will the Federal Reserve’s Balance Sheet be the First Domino?

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Betting on the Demise of Brick and Mortar Retail

April 6, 2017

Bloomberg – Citi Has an Alternative ‘Big Short’ on Retail Analysts say bet against empty malls is too crowded, imprecise Wall Street’s bet against empty malls is getting too crowded, according to Citigroup Inc. analysts, who instead recommend wagering against individual retailers as the “next big short.” Investors should consider buying default protection through the derivatives… Continue reading Betting on the Demise of Brick and Mortar Retail

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More on Emerging Market Flows

April 6, 2017

Bloomberg – Emerging Market Bid Is So Hot Thailand Faces U.S. Watchlist Risk Thailand is no stranger when it comes to hot money. This time around, officials have a new dynamic to worry about when it comes to cooling inflows from abroad: Donald Trump. The Southeast Asian nation has seen $3.42 billion flood in this year,… Continue reading More on Emerging Market Flows

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Newsclips

The Confidence Gap

April 6, 2017

MarketWatch.com – Caroline Baum: Bond market to the Fed: Show me the goods  After the central bank raised interest rates last month, Treasury yields fell, suggesting there’s a confidence gap Less noted is the confidence gap. Business and consumer confidence are soaring, while President Donald Trump’s approval rating is the lowest of any president in the… Continue reading The Confidence Gap

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Still Struggling For Reliable OPEC Oil Data

April 6, 2017

The Financial Times – Information asymmetry bedevils the oil market Opec’s biggest problem is that in its tug of war with US shale no one really knows for certain which is winning. The oil cartel last year appeared to capture a major victory by corralling some of the world’s biggest producers to join it in… Continue reading Still Struggling For Reliable OPEC Oil Data

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The Cost Of QE

April 6, 2017

Library Of Economics & Liberty – What were the “costs and risks” of QE? During the recovery from the Great Recession, Bernanke seemed frustrated by the slow rate of growth in aggregate demand and the price level. And yet various QE programs were often ended before their objective had been achieved. When asked why the… Continue reading The Cost Of QE

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The Growth Of Bond ETFs

April 6, 2017

The Globe & Mail – A new Bond King gets crowned as the ETF conquers fixed income In pension plans, endowments, and mutual funds, they’ve grown as liquid alternatives to cash and temporary holding pens for capital, and as trading tools. Bond ETFs around the world are swimming in more than $700-billion of cash, with… Continue reading The Growth Of Bond ETFs

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Income Inequality

April 6, 2017

Bloomberg Business – Income Inequality The income gap narrowed in the U.S. between the Great Depression and the 1970s. Since then, it has widened. From 1979 to 2013, inflation-adjusted after-tax income for the top 1 percent of households grew 188 percent; for the bottom fifth it rose 18 percent. The top 1 percent of earners took… Continue reading Income Inequality

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Hedge Funds Now Receive Interest On Overnight Deposits

April 6, 2017

The Wall Street Journal – Fed Approves Deposit Accounts on Behalf of Asset Managers The Federal Reserve is now allowing hedge funds and other asset managers to indirectly earn interest from the central bank. Until a few weeks ago, interest-earning deposit accounts at the Fed were the sole privilege of banks and financial market utilities… Continue reading Hedge Funds Now Receive Interest On Overnight Deposits

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High Stock Prices Worry Some Fed Members

April 6, 2017

Bloomberg Business – Some Fed Members Are Getting Worried About Stock Valuations. Here’s What The Charts Show Some Fed officials see equity prices as ‘quite high’ How high is too high? Not for the first time, Federal Reserve officials have injected themselves into the debate on stock valuations, pointing out lofty U.S. equity markets in the… Continue reading High Stock Prices Worry Some Fed Members

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Why This Bull Market Isn’t Experiencing A Surge In Hiring On Wall Street

April 6, 2017

The New York Times – Bull Markets Don’t Mean Extra Jobs for Wall Street Bull markets aren’t what they used to be, at least when it comes to New York’s economy. Although the stock market is surging and profits on Wall Street last year hit their highest level since 2012, the good times are not translating… Continue reading Why This Bull Market Isn’t Experiencing A Surge In Hiring On Wall Street